The Michigan Daily - Friday, June 6, 1986 - Page 11 U.S. seeks loan defaulters By AMY MINDELL with wire reports The federal government has begun cracking down on students who fail to pay back loans to the government, using what one government official called "various and sundry ways." One method surprised thousands of student loan defaultors who had ex- pected to get tax refunds in the mail. Instead, they received notices from the Internal Revenue Service saying the money will be withheld to repay their student loans. THE PROGRAM is part of a larger federal crackdown on other gover- nment loans - including farm loans. Although five federal agencies benefitted from the plan, the biggest chunk netted thus far has gone to the Daily Photo by ANDI SCHREIBER education department. The depar- Alpah Epsilon Pi and Triangle fraternity rush banners hang in the Diag last September. This September, the tment has received $116 million. number of banners in the Diag will be limited to three at a time, due to a mandate by the Office of Business "This collection is something of Operations. vindication for those nine of 10 student loan recipients who do repay their loans on time, in full," said William Bennett, director of the education Diag Banners limited to three department_ Stu1dent if The payback rate at the University is higher, at 93 percent, according to Harvey Grotrian, director of the Of- fice of Financial Aid. THE AVERAGE debt collected af- ter the program was put in place has been $544 per debtor. The largest debt was from a $9,600 from a student loan, by a Washington D.C. doctor. In addition to repayments through the IRS plan, James Miller, director of the federal Office of Mangement and Budget, said 50,000 people have voluntarily repaid debts to avoid con= frontation with the IRS. Miller said the program shows that the government is serious about collecting. "You can run, but you can't hide," he said at a press con- ference earlier this week. "CONGRESS IS giving us more power to get payment on deliquent loans," said Bob Jamroz, an official at the U.S. education department and a specialist on financial aid and student debt. Iebtedness (ContinuedfromPagei 1 according to Jeff Kolodisa, a senior and a member of Michigan Adver- tising Works. He speculates that placement will remain on a first come first serve basis. Although Horne and Kolodisa acknowledge that there have been past problems with groups who didn't register their banners, who didn't take them down in due time, or who hung them improperly on the trees, Horne feels that other possibilities could have been considered. "Maybe if the student groups put down a deposit, then they might be more responsible for the placement and management of their banners," she said. "Freedom of speech has to be exer- cised with responsibility," said Fred Meyer, University Planner. "It's been Applicatiot - I approved because the banners have only last Friday. According to been endangering students and the Prasad, they are waiting to obtain trees, he added. more information before they react w orries olieiais with any resolutions orstatements. The statement is not a proposal or a continued from Page4 the family's income, family size, and plan, but an already decided policy. Kolodisa feels that the 'U' is actively participate in the economy. number of children in college. Then Violating student organizations will following other universities by 'im- "Many young adults are graduating we look at national education be charged $25 by the Grounds Depar- plementing more control mechanisms with thousands of dollars in loans and association tables and calculate tment to cover the expenses of upon students." "How can so many can't pay them back. You have to whether the student can get a loan," removal. years of banners be ended so work many years to pay off the loans Grotrian said quickly?" he asked. before you can do other things with Grotrin said automatic eligibility "Banners give the Diag a certain Russel Reister, the director of Plant the money, like buy houses, cars and may be removed in the near future, Banersgiv te Dag crtan Rssl Ristrthedirctr o Plntluxuries," Christensen said. but this wouldn't affect University spirit and life...the feeling that people Operations, was not surprised to hear Another dispunt sas bered students because other forms of aid are doing interesting things," said that many students feel their rights Another suther students should sre ea se or foms faid Eric Schaufer, a law student andben thaeed "Isoud e aroudwehrsuet hudae available for low income families. memer ofthever, unc. being threatened. It should be receive free grants for college, with Solutions for solving the student member of the University Council. remembered, though, that there are no payback required. debt problem includes indebtedness plenty of billboards," he said. Jamroz said he favored grants over counseling, increased employment on "It's either an administrative blun- "Although at times the banners get loans, except for low income campus provided by the University, der or an attempt to sanitize th to be too much, I feel that its better to families-under $18,000 per year-for or various pre-payment plans. Diag," Schaufer said. The U' a family of four. Grotrian said University officials definately want to regulate political bring events to attention and keepthe BUT GRANS said it is more dif- areoin i n o ii expression," he continued. students informed," said Klaus Tap- ficult for a middle-income student to units." Under the plan, tuition, for MSA was informed of the new policy the German House. get through college, than a student example, could be sold in 100 units, from a poor family, with the $20 units accessible for gifts "The people being hurt are those during the student's life. Tuition whose parents are 'rich' on paper, but would be frozen. zs to LS increase : ain really have other expenses to pay, like other students in school. It's almost (Continued from Pages) better if you are destitute than middle optimistic about the prospects for State. He said that choosing a college "increasing awareness that the bet" are si University recruiting. He said the is a family decision and such highly- University is offering a very good ce he sad g Sine 900 te fdealgovernment Great Lakes area has been hit hardest publicized incidents as the MSU dor- education for the price. There is a has increased restrictions on student by population declines since the late mitory fire and a pornographic film research excellence here comparable loans. Students now must be from 1970s, and Michigan has been the har- recently made by students have hurt to Ivy League schools." families making' under $30,000 to dest hit of the Great Lakes states. the school's recruiting image. Both Montgomery and Donahue automatically qualify for a loan, and Despite this drop, he points out, the MSU remains the University's said recent books which rated the all others must be checked by finan- University has still seen record num- biggest competitor for in-state University highly and described it s cial aid offices. bers of applications. students, said. Donahue. Nationally, a "public Ivy" had been helpfu. "SINCE 1980 we have had to check "We're bucking that trend," said the University competes with North- The University has also recruited S Sjorgren. "This University is in as western, the University of Pen- far more actively in recent years. good as a position as anybody in the nsylvania and the Ivy League schools Donahue said Michigan was "a 0WU10 $L!JtGt country to meet the problem." because many students who end up at sleeping giant" six or seven years DONAHUE attributes the Univer- Michigan also applied to those ago; the admissions office was not Professional * Experienced sity's success to good publicity and schools, he added. doing a lot of things it could have. NO WAITING! active recruiting. University sports, Mathematics Prof. Hugh Mon- Now, he said, "we're working as hard student activities, and the state's im- tgomery, a member of the LSA Blue as we ever have." DASCOLA STYLISTS proving economy help the Univer- Ribbon Commission established in sity's image, he said. part to deal with the demographic "We're after the very, very, very Maple Village ....... 761-2733 Donahue contrasted the Univer- problems facing the University, said good student," said Donahue. "So is liberty off State ..... 668-9329 sity's image with that of Michigan the recent increases were due to an everybody else." FIRST PRESBYTERIAN CHURCH 1432 Washtenaw Ave., 662-4466 (between S. University and Hill) Sunday 9:34 and 11:00 a.m. Coffee Hour -10:30 Social Hall Adult Education Classes during both services. Campus Group: Coordinator - Jamie Schultz. Meets for Bible Study 7 p.m., Wednesdays. Dr. William Hillegonds - Sr. Minister.